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Ram and Shyam are partners in a firm. Ram withdrew Rs 5,000 p.m. at the end of each month starting from 31 January 2011 till 30th November and Rs 8,000 on 31 December, 2011. If interest on drawing is?
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Ram and Shyam are partners in a firm. Ram withdrew Rs 5,000 p.m. at th...
**Calculation of Interest on Drawings**
To calculate the interest on drawings, we need to determine the average amount of drawings made by Ram during the year and then apply the appropriate interest rate.
**Step 1: Calculate the Total Drawings**
We need to calculate the total amount of drawings made by Ram during the year. Here is the breakdown of the monthly withdrawals:
- January 31, 2011: Rs 5,000
- February 28, 2011: Rs 5,000
- March 31, 2011: Rs 5,000
- April 30, 2011: Rs 5,000
- May 31, 2011: Rs 5,000
- June 30, 2011: Rs 5,000
- July 31, 2011: Rs 5,000
- August 31, 2011: Rs 5,000
- September 30, 2011: Rs 5,000
- October 31, 2011: Rs 5,000
- November 30, 2011: Rs 5,000
- December 31, 2011: Rs 8,000
Total Drawings = Rs 5,000 x 11 + Rs 8,000 = Rs 63,000
**Step 2: Calculate the Average Drawings**
Next, we need to calculate the average amount of drawings made by Ram during the year. To do this, we divide the total drawings by the number of months:
Average Drawings = Rs 63,000 / 12 = Rs 5,250
**Step 3: Calculate the Interest**
The interest on drawings is calculated using the following formula:
Interest on Drawings = Average Drawings x Interest Rate
The interest rate is usually specified in the question or given by the firm. For example, if the interest rate is 10%, then:
Interest on Drawings = Rs 5,250 x 10% = Rs 525
Therefore, the interest on drawings made by Ram during the year is Rs 525.
To calculate the interest on drawings, we need to determine the average amount of drawings made by Ram during the year and then apply the appropriate interest rate.
**Step 1: Calculate the Total Drawings**
We need to calculate the total amount of drawings made by Ram during the year. Here is the breakdown of the monthly withdrawals:
- January 31, 2011: Rs 5,000
- February 28, 2011: Rs 5,000
- March 31, 2011: Rs 5,000
- April 30, 2011: Rs 5,000
- May 31, 2011: Rs 5,000
- June 30, 2011: Rs 5,000
- July 31, 2011: Rs 5,000
- August 31, 2011: Rs 5,000
- September 30, 2011: Rs 5,000
- October 31, 2011: Rs 5,000
- November 30, 2011: Rs 5,000
- December 31, 2011: Rs 8,000
Total Drawings = Rs 5,000 x 11 + Rs 8,000 = Rs 63,000
**Step 2: Calculate the Average Drawings**
Next, we need to calculate the average amount of drawings made by Ram during the year. To do this, we divide the total drawings by the number of months:
Average Drawings = Rs 63,000 / 12 = Rs 5,250
**Step 3: Calculate the Interest**
The interest on drawings is calculated using the following formula:
Interest on Drawings = Average Drawings x Interest Rate
The interest rate is usually specified in the question or given by the firm. For example, if the interest rate is 10%, then:
Interest on Drawings = Rs 5,250 x 10% = Rs 525
Therefore, the interest on drawings made by Ram during the year is Rs 525.
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Ram and Shyam are partners in a firm. Ram withdrew Rs 5,000 p.m. at the end of each month starting from 31 January 2011 till 30th November and Rs 8,000 on 31 December, 2011. If interest on drawing is?
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Ram and Shyam are partners in a firm. Ram withdrew Rs 5,000 p.m. at the end of each month starting from 31 January 2011 till 30th November and Rs 8,000 on 31 December, 2011. If interest on drawing is? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Ram and Shyam are partners in a firm. Ram withdrew Rs 5,000 p.m. at the end of each month starting from 31 January 2011 till 30th November and Rs 8,000 on 31 December, 2011. If interest on drawing is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ram and Shyam are partners in a firm. Ram withdrew Rs 5,000 p.m. at the end of each month starting from 31 January 2011 till 30th November and Rs 8,000 on 31 December, 2011. If interest on drawing is?.
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